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Sydney rentals


Neil Morris

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$200K is a great combined wage but you won't be living in luxury in Sydney if you're looking at $1K per week rent....Slightly less income, rent $650 p/w in Brisbane - two very expensive teenage kids (including one needing expensive medical care). Not slumming it by any means, but by no means living it large....

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That sounds OK, by my previous estimations you would be left with around 130k after tax or so, use this Australian Tax Office calculator to give you an idea. Sydney is very expensive, if you need childcare or pre school expect to be out of pocket at least $50 per day per child if not more, groceries are several hundred dollars per week for a family etc.

 

http://calculators.ato.gov.au/scripts/asp/simpletaxcalc/main.asp

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We live off a little less in Sydney, we pay $800 per week on our mortgage, one child in pre school, two after school activities per child and we are certainly not saving (this could be us being useless with cash though)

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Hi

Moving to Sydney in Sept and was wandering if a combined wage of $200,000 would be enough to rent houses in the price range of $1000-$1300.

 

Thanks Neil

 

No don't think so, depending on how the 200k is split between the two people (impacting tax), you would be paying over a third and up to half your take home in rent. A good rule of thumb is pay no more than a third and ideally less. We had rent of $1,300 but significantly higher income. I would suggest you probably cap it at $1,000 if you want to keep the rent to earning ratio sensible, although even this a touch high.

Edited by Bungo
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I own my one bedroom unit in Surry Hills outright. I have an income of about $2,500 per month, nett. I struggle at times, but I could be more frugal, for instance stop going out so much. If I was paying rent on this unit, it would probably be between $500 and $600 per week. (I searched on http://www.domain.com.au yesterday for a one bedroom unit at a maximum of $600 per week in response to a query by somebody else on PIO, hoping to move to Sydney, and found plenty in that price range.)

 

$600 per week = about $30,000 per year? Come to think of it, that is about my present income of $2,500 per month? So. I reckon if I was on about $60,000 per year, I could live here in Surry Hills in my unit paying rent of $600 per week. I have no other loans to pay off. I do have a car, which I could probably do without living in Surry Hills, but i like having it. (Those 'Go-Car' type 'rent by the hour' cars have sprung up all over the inner city.) I lived for ten years in Surry Hills without a car, just renting one occasionally for the weekend, not unlike the 'Go Car' scheme?

 

Anyway, I reckon if I could live on about $60,000 per year as a single person, I see no reason why a couple could not live comfortably on $200,000 per year. I like to go out almost every night for meals, which I could cut out to save a bit of money, and I could also go without 'luxuries' like Foxtel which costs me $93 per month.

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I just had a look through my old bank statements, the ones I still have, from 1988 and 1995, when I was paying my mortgage off.

 

In February, 1988, I owed $40,000, which I think I was paying off at $260 per fortnight on monthly interest of $463.

 

My Group Certificate for 1987/88 gave my salary as $21, 473.18.

 

So, I guess my mortgage was twice my salary in 1988?

 

By January, 1995, when I owed $2,000 on my mortgage at an interest rate of 10.5 percent (Much higher in 1988 - I think it reached close to 18 percent?) I was paying it off at $170 per week.

 

I don't know how you compare my 'struggle street' a generation ago to 2015? I've heard some people on PIO allege that this is the worst time in the history of Australia, if not humankind to be living in Sydney, but I remember working six days a week, often till 10 pm at night on weekdays, and my parents used to sometimes send me cash from the UK to help with my mortgage. I had no car, and I only really went out on weekends then.

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I'd say you'd be okay if you kept to the lower part of your housing budget. You don't say which areas you are looking at or what sort of property you would like, nor whether you have other financial obligations (such as children's schooling/childcare to pay for) but I would imagine that there would be something available in most areas for that sort of price. Of course, you will get far more in some areas than others. If you have a look at http://www.domain.com.au you will be able to search rental properties which will give you an idea of what is available for your budget.

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Ideal thanks all for your replies, we have 2 children 8 and 11, looking at Castle Hill, St Ives and Sutherland areas, will be working in the Greenacre area.

 

Thanks

 

You should be able to rent a nice house for less than 1000/week around Sutherland. Can`t comment on other areas but here are some examples:

 

http://www.realestate.com.au/property-house-nsw-caringbah+south-415756875

 

Caringbah South, a sought after area, very nice, on the river

 

http://www.realestate.com.au/property-house-nsw-caringbah+south-415584127

 

or, if you wanted to be on the ocean:

 

http://www.realestate.com.au/property-house-nsw-cronulla-415511339

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  • 2 weeks later...

I often stop and rental houses. I rented a $ 1500 a month and I'm happy about it. Then I rented a car to until the city and learn more about it. My friend advised me to install a mobile app: https://itunes.apple.com/us/app/car-rentals-market-app/id878633650?ls=1&mt=8

With this mobile app, you can rent a car without any problems all over Sydney and the world.

I am very pleased that downloaded! I wish you a good journey and experience.

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Ideal thanks all for your replies, we have 2 children 8 and 11, looking at Castle Hill, St Ives and Sutherland areas, will be working in the Greenacre area.

 

Thanks

 

Hi Neil

 

We're in St Ives, 2 kids and similar income. We don't drink, smoke or spend a lot of money eating out, so we can afford your rental budget. All the extra's do add up, especially all the clubs the kids join.

 

Good luck!

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